The Department of Labor announced July 7 that it is withdrawing a proposed rule from the Biden Administration to end a program through which it issues certificates allowing employers to pay subminimum wages to workers with disabilities in settings sometimes called sheltered workshops.
The Biden-era DOL said the program is no longer necessary to motivate employers to hire people with significant disabilities because the employment landscape has changed since the program began in 1938.
DOL now says it lacks the statutory authority to phase out the program because Section 14(c) of the Fair Labor Standards Act imposes a mandatory duty on DOL to issue the special certificates. DOL is expected to continue the 14(c) program for the foreseeable future.
Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can read more here.